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Resolutions of Iftaa' Board

Resolution No.(40): "Ruling of Sharia on a Draft Article Concerning the Application of Zero-Interest Contracts in Financing at The Agricultural Credit Corporation"

Date Added : 15-12-2015

 

Resolution No.(40): "Ruling of Sharia on a Draft Article Concerning the Application of Zero-Interest Contracts in Financing at The Agricultural Credit Corporation"

Date: 11/11/1417 AH, corresponding to 20/3/1997

 

We have received the following question:

What is the ruling of Islamic Sharia on the draft article concerning the application of contracts in financing at The Agricultural Credit Corporation?

Answer: All perfect praise be to Allah, The Lord of The Worlds, and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.

Having undertaken comprehensive study, the Board has arrived at the following version:

Article (1): This regulation is to be called (The regulation of zero-interest financing contracts at the Agricultural Credit Corporation)

Article (2): Words and expressions mentioned in this regulation shall have the equivalent meanings given below, unless the context indicates otherwise.

A- The Corporation: Agricultural Credit Corporation.

B- (The Board):  Board of Directors of the Agricultural Credit Corporation.

C- The Director-General:  Director-General of the Agricultural Credit Corporation.

D- The Sharia supervisory committee: The Committee formed by virtue of this regulation to make sure that the Corporation complies with the rules of Sharia when applying it (regulation).

Article (3): By applying the zero-interest regulation, the Corporation aims at achieving the following:

A- Widening the scope of transaction with the agricultural sector through providing financing and investment services based on this regulation.  

B- Utilizing means of agricultural financing and investment on zero-interest basis.

C- Participating in the provision of necessary financing to meet the needs of the agricultural sector and its targeted groups.

Article (4): The Corporation shall accomplish its goals through the following contracts:

A- Mudarabah (Co-partnership): A contract by which the Corporation provides the needed cash, partially or completely, to finance a defined transaction where the party contracted with (Mudarib) functions on basis of sharing the profit if both parties agree on a certain percentage. In case of loss, the Corporation shall assume the liability; whereas, the partner (Mudarib) shall receive no compensation for his effort, unless he was negligent or committed a violation.

B- Muzaraa`h (Sharecropping): A contract of investing an agricultural land concluded between the owner of the land and the Corporation that shall invest it, if the produce is divided according to an agreed upon percentage. 

C- Musaqah (Share-tenancy): A contract of investing trees concluded between a company `s owner and the Corporation whereby the latter takes care of the trees provided that the produce is divided according to an agreed upon percentage.

D- Almogharasah (farm leasing): A contract between the land lord and the Corporation whereby the latter plants the land and takes care of the planted trees and provides whatever is needed for that end during a certain period, provided that the Corporation utilizes it in accordance with the agreed upon conditions.

E-Murabaha: It means selling an object while informing the purchaser of its original price and the profit he (seller) is getting in this deal. The conditions of the validity of this transaction are the same as the other transactions, i.e. the sold item itself should be lawful, pure, useful, in the possession of seller, and the seller should be able to hand it over to the purchaser. 

F- Istisnaa` (Making at the customer`s order): A contract concluded between the Corporation and the manufacturer whereby the latter shall manufacture a specified type and quantity of a certain commodity within a specified deadline of delivery in return for a defined price to be paid by the Corporation, against the needed materials and work, or the work in case the Corporation provided the needed materials.

G- Salam (Buying in advance): Amongst the conditions for the validity of Salam transaction:

1- The sold property should be describable in terms of features, quantity and available upon delivery time.

2- The contract should include the kind of the sold item, description, quantity and date of delivery.

3- If the contract doesn`t include the date of delivery, the seller is bound to deliver the item at the contracting council.

H-Any other contracts approved by the Board.

Article (5): These contracts fall under the umbrella of the stipulations of the Civil Law.

Article (6): The Corporation shall accept the investors` funds for investing them in its sphere of activities in line with the rules of Islamic Sharia.

Article (7): The Corporation may manage the manageable properties and assets on basis of sharing the profits in line with the rules of the Mudarabah (co-partnership) contract.

Article (8): The Board of Directors shall appoint a Sharia supervisory committee of no less than three specialized scholars. In addition, none may neutralize that committee, dismiss or change any of its members, save by a resolution from the Board, and a direct recommendation from the Director-General.

Article (9): The Board of Directors shall abide by the opinion of the Committee in the following:

A- The instructions issued by the Board regarding the forms and agreements necessary for executing the above contracts.

B- Reviewing the reasons for holding the Corporation responsible for any loss in investment and financing in order to check the Sharia evidence, which backs the resolution of the Board.

Article (10): The Corporation shall draw up its general policy pertaining to zero-interest financing and investment while maintaining a sufficient flow of cash in line with the sound banking customs and practices.

Article (11): The Corporation`s law, regulations and their amendments shall be enforced in cases not addressed in this regulation and after the consent of the Sharia supervisory committee.

Article (12): The Board shall issue the applied instructions necessary for executing this regulation. And Allah Knows Best.

 

Chairman of the Iftaa Board, The Supreme Judge, Izuldeen At-Tamimi
Sheikh Sa`eid Hijjawi
Sheikh Ibrahim Khashan
Dr. Abdulsalam Al-Abbadi
Dr. Fat-hi Al-Duraini
Dr. Mahmoud Al-Bakheet
Dr. Mahmoud Al-Sartawi
Sheikh Mahmoud Shewayat 

 

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Summarized Fatawaa

What is the ruling of Islamic Law on a fictitious marriage for the purpose of obtaining citizenship?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
There is no such thing in our noble sharīʿah as a "nominal" or "fictitious" marriage or divorce. Marriage and divorce are among the sacred ordinances of Allah, and it is not permissible to manipulate them or use them as a stratagem to obtain worldly gains.
The foundational purpose of a marriage contract is the permanence and continuity of the relationship between the spouses — to establish a family, and to bring forth righteous offspring. So sacred is this bond that Allah the Almighty Himself described it as a solemn covenant (mīthāq ghalīẓ), saying {what means}: "And if you wish to replace one wife with another and you have given one of them a great amount of wealth, do not take any of it back. Would you take it in injustice and manifest sin? And how could you take it while you have gone in unto each other and they have taken from you a solemn covenant?" [Al-Nisāʾ/ 20–21]
Accordingly, it is not permissible to resort to manipulation and deception in contracts that Allah, Mighty and Majestic, has described as a "solemn covenant" — all for the sake of material and worldly benefit. Marriage is built upon permanence and does not admit of a fixed time limit. If a time limit is stipulated in the contract, the contract is rendered invalid by the consensus of the jurists. Similarly, marriage is impermissible when there exists a mutual, concealed intention to limit its duration — even if no time limit is explicitly mentioned in the contract — for this constitutes a form of unlawful circumvention of the sharīʿah. This is to say nothing of the lying and deception that such conduct involves, the prohibition of which needs no elaboration. Lying, deception, and fraud for the purpose of obtaining worldly gains are among the gravest of sins.
If, however, the marriage contract is first concluded in a valid sharʿī manner and then registered civilly, it is sound and fully valid. And Allah the Almighty knows best.

What should someone do if they fasted for 30 days in their country, then traveled to a place where people are still fasting?

If a person completes 30 days of fasting in their country and then travels to another country where people are still fasting, they should continue fasting with them until they observe Eid. Even if they have already completed 30 days, he/she should abstain from eating and drinking and join the people of that country because he/she has now become part of that community.

What is the ruling on selling sacrificial animals (udhiyah) described with specific attributes and authorizing an agent to slaughter them?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
Selling sacrificial animals (udhiyah) that are described with specific attributes is permissible. This falls under the category of a salam sale (forward sale) if conducted using the terminology of salam, and under the category of a regular sale if not using the terminology of salam.
 
As for authorizing the seller to slaughter the sacrificial animal, the basic principle is that it is permissible, because the agent (wakil) stands in the place of the principal (muwakkil) in achieving his objective. This is a contract that the principal (the buyer) is entitled to perform himself, so authorizing another (the seller) to do so on his behalf is valid.
 
However, it is a condition for authorization to slaughter that the intention (niyyah) is present either at the time of slaughter or at the time of handing over the sacrificial animal to the agent. The basic principle is that the sacrificial animal must be specifically designated, as it is an act of worship. It is not required to designate it at the time of slaughter; rather, it is valid to do so before that.
 
It is permissible for the principal either to delegate the intention to the agent or to formulate it himself when authorizing the agent to slaughter. However, the sacrificial animal must be designated, even if at the time of slaughter, by the agent.
 
It is obligatory to designate the sacrificial animals so that each person offering a sacrifice receives his own specific animal. Therefore, charitable organizations and companies must take this into consideration and establish a specific mechanism that ensures no mixing of sacrificial animals occurs, so that each person offering a sacrifice receives his own designated animal. And Allah Almighty knows best.

The Prophet ﷺ said: "There will emerge from my nation people who will drink the Qurʾān as they drink milk" — is this ḥadīth authentic, and what does it mean?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
ʿUqbah ibn ʿĀmir, may Allah be pleased with him, narrated that the Messenger of Allah ﷺ said: "There will emerge from my nation people who will drink the Qurʾān as they drink milk." (Reported by al-Ṭabarānī in al-Muʿjam al-Kabīr, and cited by al-Haythamī in Majmaʿ al-Zawāʾid, who stated: "Its narrators are trustworthy.")
The meaning of this ḥadīth is that there will emerge from this blessed nation people who recite the Holy Qurʾān without reflecting upon its meanings or pondering its rulings — the noble verses passing over their tongues just as milk passes over them when it is drunk, leaving no trace of thought, understanding, or contemplation behind. [See: al-Taysīr bi-Sharḥ al-Jāmiʿ al-Ṣaghīr,Vol.2/P.63] And Allah the Almighty knows best.

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